Non Academic Turnover Savings Policies and Procedures

From October 1969 until June 1978, the campus procedure for evaluating merit increases, end-of-probation increases, and promotional increases had been for the originating department to request approval for use of funds from a pool unit consisting of departmental and college representatives. Pool units were originally established in order to place the decision-making authority for salary increases as close to the operating units as possible, thereby decentralizing salary administration. Funds for midyear increases were always dependent upon the amount of money generated by salary turnover savings, i.e., the amount above the range minimum when a state-funded position is vacated. The original pool units were given the authority to make decisions in certain areas of salary administration with the Staff Human Resources Office assuming an advisory role for the purpose of assuring uniformity in salary administration practices.

With the implementation of the Step Plan in August, 1975, each pool unit had two specific allotment systems: One primarily of numbers (FTE) for granting superior performance increases funded by a central superior performance increase reserve, and the other an amount of money to be spent on an annual basis for promotional increases and new hires above Step A.

Effective July 1, 1978, all turnover savings were returned directly to the college or institute generating the savings. An account was created in each college or institute and, in some instances, for schools or departments within the college. Each year a superior performance allocation policy is determined, and each unit is notified of the number of superior performance awards it is expected to grant, using funds from the primary unit account or other departmental sources. Promotional increases and new hires above Step A may also be funded from accumulated turnover savings or other designated sources of permanent funds. State and nonstate employees are to be treated the same for salary purposes.

Non-Open Range

Prior to FY84, salary administration for non-open range positions was handled on a centralized basis. Turnover savings generated by Negotiated, Established and Prevailing positions were returned to campus-wide pools, and these funds were used for longevity increases, reclassifications and hires above the range minimum for positions in these employee groups. Funds for contract increases were also held in a campus pool and were transferred to departments as new contracts became effective.

These procedures were changed at the beginning of FY84. The non-open range pools were decentralized and units with employees in these groups are now responsible for the funds associated with these positions, i.e. turnover savings, promotional and longevity increases. Contract increase funds are allocated to the units based on the percent increase set by the campus, and units are responsible for salary increases resulting from new contracts.

SECTION II - SOURCE OF FUNDS

Resources

Turnover Savings

All turnover savings will be retained by the generating unit in a special nonacademic turnover savings account established for the unit.

Any additional savings generated by downgrading positions will also betransferred to the same account unless specifically requested otherwise by the unit via correspondence with Business Affairs.

Annual balances for each primary unit will carry over to succeeding fiscal years.

Other Permanently Assigned Budget Resources

In the event of inadequate turnover savings, a department head may utilize other permanently assigned budget resources (wages, expense, equipment, etc.) to fund personnel transactions. Use of any of these resources is a permanent reduction in the particular account utilized. Identification of the particular account by account number and title on the Salary Request Transmittal Sheet signed by the department head will be sufficient authorization for the Office of Business and Financial Services to effect the transfer of funds.

Use of Turnover Savings

Regular Personnel Transactions

Turnover savings will be used to fund salary increases on a permanent and cash basis.

Replacing or Supplementing Other Budget Categories

Turnover savings, both annual and cash, may be used to replace funds previously borrowed from other budget categories (wages, expense, equipment, etc.) or to supplement these same categories. A budget transfer should be sent to the Office of Business and Financial Services. As stated previously, turnover savings are to be used primarily in funding salary increases for nonacademic personnel.

General

The annual turnover savings account balances for each unit will be carried over from one fiscal year to the next. Unspent turnover savings cash balances cannot be carried over, but can be used for any nonrecurring expenditures.

SECTION III - UNIT PROCEDURES

Reclassification Requests - All Pay Plans

The department determines the source of permanent funds to be made available for the proposed reclassification.

The department submits a completed job description along with the approved Salary Request Transmittal Sheet to the Classification Section of the Staff Human Resources Office.

The Classification Section evaluates the request and notifies the department of its decision. The department forwards to the Classification Section the paperwork necessary to effect the action. The Classification Section reviews the paperwork to insure compliance with Policy and Rules, Nonacademic, Rule 5.08, Regulation 5.082 or the applicable contract.

The Classification Section transmits the approved requests to the Records Section for processing effective the beginning of the payroll period in which the audit is conducted or the beginning of the payroll period following successful completion of the appropriate Civil Service examination, whichever date is later.

The Records Section updates the payroll master file and sends a copy of the new change of status to the Office of Business and Financial Services for budget changes.

Vacant positions which are reclassified or reallocated to a class with a higher range minimum will require that a funding source be identified to meet the hire-in salary of the individual employed in the position.

When a vacant position is reclassified or reallocated to a class with a lower range minimum the department should notify the Office of Business and Financial Services of the downgrade and specify where the unneeded salary funds should be transferred.

New Hires Above-the-Line and Promotional Transfers - All Pay Plans

The starting or referral salary for new hires and promotional transfers (via the register) will be recommended by Staff Human Resources. A department can consult with Staff Human Resources to adjust the referral salary if the department feels the amount does not properly reflect the candidate's background and experience. If the salary is above the range minimum, the department should notify Business Affairs of the source of funds for the increase in salary. Business Affairs will then process the necessary budget transfers.

Superior Performance - Open Range

Each college or institute is a primary unit and may establish its own procedures to determine award of superior performance increases. Some units will elect to do this by means of an operating committee, while others may follow the formal organizational structure of the unit. Employees within each unit should be informed of the procedures by which superior performance increases are granted, and of the unit's allocations and number of awards.

Each primary unit is given a superior performance number allotment at the beginning of each fiscal year. Presently the allotment is equivalent to 20 percent of the total permanent, state and nonstate, open range FTE's within the department as of July 1. Superior performance increases can be granted by a department at any time during the fiscal year, but superior performance increases not granted in one fiscal year cannot be carried over into the next fiscal year. Sources of funds for superior performance increases are identified in Section II.

A completed Salary Request Transmittal Sheet should be sent to the Salary Administration Section, Staff Human Resources, for each employee who is granted an increase by the primary unit. The Salary Administration Section reviews the paperwork to insure compliance with Policy and Rules - Nonacademic, Rule 5.17. Superior Performance Increases are effective at the beginning of the pay period following approval of the increase by the Salary Administration Section of the Staff Human Resources Office.

The Staff Human Resources Office will monitor the number of superior performance increases given by the primary units and will institute controls as necessary to insure fair and equitable distribution of superior performance increases.

SECTION IV - COMPOSITION OF PRIMARY UNITS

Each college/institute is considered a primary unit and has the responsibility for the management of its own funds. Subunits with separate turnover savings account numbers may be established within a primary unit if authorized by the dean/director. Administrative units reporting directly to vice chancellors will be established as units as authorized by the respective vice chancellor. Any changes in unit composition must occur on July 1 and the Office of Business and Financial Services must be notified prior to that date.